ProCredito, a Mexican lending platform for SMEs, secured a USD6m private credit facility from Blue Earth Capital (formerly PG Impact Investments), a Swiss impact investment fund.
(Blue Earth Capital) – During the summer months, the team at Blue Earth Capital (“BlueEarth”) has been busy investing across the entire impact investment platform with six new investments – four direct debt, one fund and one direct equity investment.
In June, BlueEarth provided loans to two institutions in Cambodia. The first was a USD 5 million loan into First Finance PLC (“First Finance”), which aims to improve the lives of underserved Cambodians by offering affordable, transparent and appropriately structured housing finance to low- and middle-income households. With a population of over 16 million, two in three people in Cambodia lack decent, affordable housing and about two million houses need improvement to meet minimum quality standards. This investment will allow First Finance to expand its loan book and reach more low- and middle-income families.
The second debt investment of USD 14 million was provided to LOLC (Cambodia) Plc., in order to ensure the company’s continued growth in financial solutions that meet the needs of Cambodian families. Despite over two decades of positive economic growth, more than 25% of Cambodia’s population of 16 million remain in poverty, 90% of which live in the countryside. In response to this challenge, LOLC Cambodia has made it its mission to improve the lives of entrepreneurs and families at the base of the socio-economic pyramid by providing effective and sustainable client empowering financial services.
The Latin American debt team closed two investments in Mexico: a USD 6 million loan was provided to ProCredito, a non-bank financial institution that provides loans and leases to Mexican small and medium enterprises (“SMEs”). ProCredito not only provides access to high quality financial services for SMEs but also supports Mexico’s transition to a low-carbon economy through its dedicated products for green public transport initiatives and for agricultural producers that are looking to reduce natural resource inputs. Furthermore, BlueEarth has renewed its commitment to Credijusto, to build on this existing partnership and to support Credijusto’s ambitious expansion plans. With its recent acquisition of Banco Finterra, the company will be able to offer a full suite of diverse digital banking products for small and mid-sized businesses across the country, including in the agriculture sector.
For the past year, BlueEarth had screened ample healthcare investment opportunities in South & Southeast Asia and has finalized an investment of USD 9 million in Tata Healthcare Fund II (“the Fund”). The Fund aims to invest in opportunities that address the healthcare supply and demand gap in India, as access to quality and affordable healthcare remains a significant challenge. The Fund invests growth equity capital in companies operating in India’s healthcare sector, focusing on consumption and competency.
The latest investment was carried out by BlueEarth’s direct equity team, who signed an agreement to invest in 80 Acres Farms (“80 Acres”), a leading vertical farming business based in Ohio, United States. The vertical farm systems grow the widest variety of produce commercially sold at scale by any vertical farm to-date, including leafy greens, herbs, tomatoes, cucumbers, and microgreens. With farms located closer to customers, 80 Acres’ produce travels significantly fewer food miles, shortening the farm-to-table footprint and reducing overall food waste. Growing methods at 80 Acres use 97% less water than traditional farming practices and are powered by renewable energy.
Urs Baumann, Co-founder & CEO of BlueEarth, comments: “We are pleased with our recent investment traction, as it clearly demonstrates the increasing need for private market capital for inclusive growth in emerging markets as well as for climate solutions in developed markets.”
About Blue Earth Capital AG
Blue Earth Capital is an independent global impact investment firm, headquartered in Baar-Zug, Switzerland with operations in New York, London and Singapore. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges. Initiated in 2015 by Urs Wietlisbach and backed by the Wietlisbach Foundation, Blue Earth Capital has been incubated and built-up with the support of Partners Group, leveraging its experience as a leading global private markets firm. Blue Earth Capital is fully owned by Blue Earth Foundation, a Swiss not-for-profit organization which protects the impact mission of Blue Earth Capital and re-invests 100% of the firm’s operating profits in support of its philanthropic activities.